\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 800 China Communications Construction Company Limited(601800) )
Core view:
Event: the company released the annual report of 2021. In 2021, the company achieved a revenue of 685639 billion yuan, a year-on-year increase of 9.25%; The net profit attributable to the parent company was 17.993 billion yuan, a year-on-year increase of 11.03%; The net profit attributable to the parent company after deduction was 14.592 billion yuan, a year-on-year increase of 5.91%.
The performance grew steadily, and the revenue of infrastructure design business grew rapidly. In 2021, the company achieved a revenue of 685639 billion yuan, a year-on-year increase of 9.25%. Among them, the revenue of infrastructure construction, infrastructure design, dredging and other businesses was 607411 475.93 42.852 14.507 billion yuan respectively, with a year-on-year increase of 8.49% 18.99% 12.06% 24.61% respectively. The revenue of infrastructure design business increased rapidly, mainly due to the further increase of the revenue contribution of large-scale comprehensive projects. In 2021, the gross profit margin and net profit margin of the company were 12.52% and 3.43% respectively, with year-on-year changes of 0.95pct and -0.18pct respectively; The net profit attributable to the parent company was 17.993 billion yuan, a year-on-year increase of 11.03%; Net operating cash flow was -12.643 billion yuan, compared with 13.851 billion yuan in the same period last year, mainly due to changes in accounting policies.
The newly signed contract amount increased by 18.85%, and the newly signed contract amount of railway and dredging business increased sharply. In 2021, the newly signed contract amount of the company was 1267912 billion yuan, with a year-on-year increase of 18.85% and 108% of the annual target. The increase of the newly signed contract amount mainly came from the increase of investment and construction demand in urban comprehensive development, municipal engineering, housing construction, roads and bridges, rail transit and other project fields. Among them, the newly signed contracts for infrastructure construction, infrastructure design, dredging and other businesses were 1125368 445.08 873.01 107.35 respectively, with a year-on-year change of 18.35% – 6.75% 48.38% 14.38% respectively. In the infrastructure construction business, the previous contract of railway construction was RMB 25.006 billion, with a year-on-year increase of 61.80%.
Policies promote the healthy development of REITs, and the company is expected to make deep profits. On March 18, the official website of the CSRC published “further promote the pilot of public REITs and further promote the virtuous cycle of investment and financing”. The CSRC is working with relevant parts to further promote the pilot of infrastructure REITs, improve the system and mechanism, broaden the scope of the pilot, give better play to the functional role of public REITs, further promote the virtuous cycle of investment and financing and help the development of the real economy. Recently, Huaxia China Communications Construction Company Limited(601800) reit will be officially put on sale, and the total scale of raising is expected to be 9.399 billion yuan. In the future, the company will continue to carry out public offering REITs for infrastructure, open up the channel for asset exit, and further revitalize high-quality stock infrastructure assets.
Investment suggestion: it is estimated that the company’s revenue from 2022 to 2023 will be 788485/890988 billion yuan respectively, with a year-on-year increase of 15% / 13%, the net profit attributable to the parent company will be 20.332/22.772 billion yuan, with a year-on-year increase of 13% / 12%, EPS per share will be 1.26/1.41, and PE corresponding to the current stock price will be 7.7/6.8 times respectively, maintaining the “recommended” rating.
Risk warning: the risk of intensified market competition; Risk of covid-19 epidemic affecting project progress; The risk that the recovery of accounts receivable is less than expected.
